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7 Day Countdown to Tax Deadline-Tax Deductions for Entertainment Facility

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Your vacation home can produce business deductions!

But you need to avoid having your vacation home classified as an entertainment facility in order to qualify for business deductions.

Courts have destroyed facility deductions when they are incidents of entertainment.

Do you use your vacation home for business stays?  If so, you get around the vacation home rules and may deduct your business lodging costs.

  1. Business use of the vacation home does not trigger the vacation home disallowance rules
  2. Personal use of the vacation home does not trigger the disallowance rules or destroy the business deductions, although personal use does lower your business use percentage and
    resulting deductions.
  3. If the primary purpose of the meeting is directly related to your business, meeting use of the vacation home is not a prohibited entertainment use.
  4. Overnight business lodging use of the vacation home produces deductible business use of the
    vacation home that adds to the business use percentage.

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